RMBS

New Residential acquired its latest pool of loans from five servicers, garnering a rare pledge of P&I advances on defaulted mortgages.

Liquidity, products and pricing are the main concerns for the secondary mortgage market in 2019.

The $255 million Verus 2018-INV2 has more exposure to cashout refinancings than the prior deal, completed in April; on the plus side, borrowers in the latest deal have more equity in their homes.

The $320.1 million Homeward Opportunities Fund 1 Trust 2018-2 features fewer loans that rely on alternative ways to document borrower income, but borrowers have higher debt-to-income ratios and lower FICOs.

Stricter energy regulations for European residential and commercial buildings, effective in 2020, will likely depress cash flow and property values, though the impact will vary by country, according to Moody's Investors Service.

As home value appreciation slowed, gains in home equity for the third quarter fell to the lowest level in two years, according to CoreLogic's homeowner equity report.

Over the past five years, 2nd lien RPL have defaulted at a similar rate to 1st liens, and have prepaid much faster; the senior tranche of notes to be issued has a weighted average life of around 1.5 years.

We are one year deeper into an already extended credit cycle, so it’s even more important to focus on market complacency.

Subprime originations are climbing in multiple consumer loan categories, including mortgages, but the increase is much smaller in the home loan sector than it is in other markets, according to TransUnion.

The $345 million COLT 2018-4 Mortgage Loan Trust has a 42% concentration of loans from the lender’s highest credit tier of high net incomes and high-cost housing within a recently launched “elite access” class of borrowers.